New Delhi/Mumbai: The country’s biggest power generator, NTPC Ltd, posted a 58% increase in fourth quarter profit after selling more electricity and getting a tax refund.
Net income climbed to Rs2,110 crore in the three months ended 31 March from Rs1,340 crore a year earlier, the utility said in a statement to the Bombay Stock Exchange on Friday. That compares with a provisional Rs1,740 crore announced by chairman R.S. Sharma last month.
Higher earnings will help the electricity producer to almost double its installed capacity by 2012 to help meet demand and end blackouts in the world’s second fastest-growing major economy.
Robust growth: NTPC chairman R.S. Sharma.
India aims to add 78,700MW of capacity by 2012, cutting peak-hour shortages that reached a provisional 12% in the year ended 31 March, according to the Central Electricity Authority.
“The company benefited from a tax refund this quarter compared with the year-ago quarter, when extraordinary high tax payment had led to a fall in profit,” said Girish Solanki, a Mumbai-based analyst at Angel Stock Broking Ltd.
“We see earnings growth from plans to add more than 3,000MW capacity with steady fuel linkages,” Solanki added.
The company received Rs151 crore as tax refund during the quarter compared with tax of Rs812 crore it paid a year earlier.
Interest payments fell to Rs567 crore from Rs810 crore.
NTPC shares rose 2.1% to close at Rs216.6 in Mumbai trading. The share has advanced 20% so far this year, compared with a 44% increase in the benchmark Bombay Stock Exchange Sensex index.
NTPC has 22 plants with a total installed capacity of 27,850MW, according to its website. That’s about 19% of India’s present capacity of 147,965MW.
Net sales rose 6.6% to Rs11,450 crore, NTPC said.